The Influence Of Social Interaction On The Purchase Decision Of "New Citizens" Family Commercial Insurance

Commercial insurance is not only a major supplement to social insurance,but also an important mean to avoid risks and effectively reduce risk losses,which has a special status and plays an important role in the process of social and economic development.Commercial insurance exhibits its significance in social stability and reformation of the economic framework.In the wake of the enhancement of Chinese modernization process,the word“new citizens” has been put forward to represent the people who moving from rural to urban areas.Actually,direct consequences of urbanization and agricultural modernization lead to the population migration,which closely related to many factors,including employment,schooling and medical care,etc.The new citizens are constantly moving into each city and participating in local social interaction,and social interaction as an information transmission mechanism have an important impact on commercial insurance purchasing decisions.The study of the extent and mechanism of social interaction on the commercial insurance purchasing decision of "new citizens" is important to stimulate the potential insurance demand of "new citizens",which promotes the diversification and personalization of commercial insurance products,and enhances the availability of financial services for "new citizens",facilitating the development and expansion of commercial insurance market in China.The micro data from China Financial Household Survey(CHFS)in 2015,2017 and2019 unexceptionably showing some tangible cases and guiding the way for this essay.Based on statistics above,this paper investigates the impact of social interaction on the commercial insurance purchasing decisions of "new citizens" households by distinguishing online social interaction from offline social interaction and examining two channels:endogenous interaction and situational interaction.The mediated effects model was used to verify the influence of "endogenous interaction channel-financial knowledge,economic and financial concern-commercial insurance purchase" and "situational interaction channel-risk attitude,trust in commercial insurance-commercial insurance purchase".Then the heterogeneity of social interaction on commercial insurance purchase decisions of "new citizens" households has been further investigated,variables such as gender,age,education level and health status of household head were selected for analysis.Finally,the robustness of the results of the empirical analysis is tested in various ways and possible endogeneity issues are addressed.The empirical results show that:(1)online social interaction and offline social interaction have a profoundly positive effect on "new citizens" families’ commercial insurance purchasing decisions,and offline social interaction have a greater effect on the purchase of commercial insurance for "new citizens" households than online social interaction.(2)Endogenous interaction channel to promote the purchase of commercial insurance by raising the level of financial literacy and economic and financial concerns of "new citizens" households;the situational interaction channel promotes the purchase of commercial insurance by suppressing the risk aversion of "new citizens" households and strengthening their trust in commercial insurance.(3)Older,poor physical condition,and more educated "new citizen" households are easily influenced by social interaction in their commercial insurance purchasing decisions.Male headed households are more likely to be influenced by offline social interaction,while female headed households are more likely to be influenced by online social interaction.(4)The regression results of this paper are proved to be robust by using Logit and OLS models,replacing the explained variables and screening "new citizen" households with financial employees in their family members.According to analysis above,this paper puts forward the following countermeasure suggestions:(1)The government should elevate the insurance market supervision,rectify the sales chaos,and create a good insurance market order.(2)Pay attention to the social interaction affect,improving the residents’ awareness of risk and insurance,and strengthen the financial education of "new citizens".(3)Optimizing network operation and management,constantly elevating function of internet infrastructure,broadening the channels for better gathering insurance-related information for residents are able to greatly accomplish the tasks.(4)Insurance companies should strengthen the sense of integrity of business entities and safeguard the legitimate rights and interests of consumers.(5)Hold more insurance seminars and health salons to strengthen the communication among the "new citizens".(6)Make full use of the big data,provide more precise,efficient marketing,in order to meet the development requirements of the Internet era,timely transformation,fully explore the potential customer insurance needs,enhance customer stickiness,build a new commercial insurance marketing model,and provide quality products and services.(7)As consumers,they should take the initiative to learn about insurance,establish risk management awareness,strengthen social interaction,enhance effective communication,and improve their own commercial insurance purchases.